tailieunhanh - Ebook Principles of microeconomics (12th edition): Part 2

(BQ) Part 2 book "Principles of microeconomics" has contents: Monopoly and antitrust policy, oligopoly, monopolistic competition, uncertainty and asymmetric information, income distribution and poverty, income distribution and poverty, economic growth in developing economies,.and other contents. | Part III Market IMperfectIons and the role of GovernMent Monopoly and Antitrust Policy 13 Chapter Outline and learning ObjeCtives Imperfect Competition and Market Power: Core Concepts p. 298 Explain the fundamentals of imperfect competition and market power. Price and Output Decisions in Pure Monopoly Markets p. 299 Discuss revenue and demand in monopolistic markets. The Social Costs of Monopoly p. 309 Explain the source of the social costs for a monopoly. Price Discrimination p. 312 In 1911 the . Supreme Court found that Standard Oil of New Jersey, the largest oil company in the United States, was a monopoly and ordered that it be divided up. In 1999 a . court similarly found that Microsoft had exercised monopoly power and ordered it to change a series of its business practices. From 2010 to early 2013 the Federal Trade Commission—one of the government agencies empowered to protect consumers—investigated whether Google possessed monopoly power and should also be restrained by the government in its business practices. What do we mean by a monopoly, and why might the government and the courts try to control monopolists? Have our ideas on what constitutes a monopoly changed over time with new technology? In previous chapters, we described in some detail the workings and benefits of perfect competition. Market competition among firms producing undifferentiated or homogeneous products limits the choices of firms. Firms decide how much to produce and how to produce, but in setting prices, they look to the market. Moreover, because of entry and competition, firms do no better than earn the opportunity cost of capital in the long run. For firms such as Google and Microsoft, economic decision making is richer and so is the potential for profit making. In the next three chapters, we explore markets in which competition is limited, either by the fewness of firms or by product differentiation. After a brief discussion .